The present invention describes a method (600, 600a) of forming bitumen bags (605) for packaging bitumen products into blocks or slabs. Each block/slab of bitumen (200,200a,200b,200c) is encapsulated in the bitumen bag, which is composed of a bitumen compound (160). The bitumen compound (160) is made up of about 10-30% by weight of natural bitumen and about 5-25% by weight of a synthetic rubber polymer and copolymers. The bitumen compound (160) is melted with the bitumen content and is fully miscible with the molten bitumen, leaving no residue but enhances the physical properties of the resultant bitumen mixture.